Guardian media firm makes £186m, but pays only £200,000 tax
Thursday 27 June 2013
The events and magazines company Top Right Group ran up a corporation tax bill of just £200,000 despite making a pre-tax profit of £186.2m last year.
Top Right, owned by Guardian Media Group and Apax Partners, landed a huge one-off windfall of £166.1m after selling its motoring research arm, CAP. Its chief financial officer, Mandy Gradden, told The Independent the profits on the sale were "exempt from tax under the substantial shareholding exemption which is available to every company in the UK".
Top Right, which owns the Cannes Lions advertising festival and magazine brands Broadcast and Retail Week, cut its tax bill further by bringing forward tax losses from previous years.
GMG, owner of The Guardian newspaper, and private-equity firm Apax, bought Top Right, formerly known as Emap, for £1.1bn in 2008, and own it through parent companies in the Cayman Islands and Luxembourg. Ms Gradden said the offshore structure did not affect its tax bill.
In a sign of how Top Right needs to cut its debt load, the group used much of the CAP proceeds to make a "pre-payment" of £110m to lenders in January this year to provide extra "headroom" on bank covenants.
Ms Gradden was bullish about the future after like-for-like sales rose by 7 per cent to £251.7m last year. Even the magazines arm returned to growth as investment in digital paid off. She said Top Right is "gunning for double-digit growth in 2013".
However, operating profits dropped to £23.6m from £59.6m as the chief executive, Duncan Painter, wrote off £41.1m in impairment costs and invested in the business which he split the group into three divisions. He claimed 2012 was a year of "transformation" and profits should grow this year.
- 1 Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
- 2 Nick Kyrgios calls former Olympian Dawn Fraser a 'blatant racist' after she tells Wimbledon star to 'go back where their parents came from'
- 3 World learns of app that shows you who unfriended you on Facebook, app promptly crashes
- 4 Chris Moyles reportedly set to make radio comeback with new breakfast show on XFM
- 5 The Greece debt crisis explained in less than 100 words
Florida man sentenced to two-and-a-half years for having sex on the beach in front of a child
Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
Tube strike July 2015: Is it still on? Everything you need to know about the industrial action
Eiji Tsuburaya: Godzilla co-creator honoured in today's interactive Google Doodle
Florida teacher sentenced to 22 years in prison for sexually abusing three pupils
More Britons believe that multiculturalism makes the country worse - not better, says poll
Osborne to cap family benefits at £23,000 – announced ahead of his post-election Budget
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
Sickness and disability benefits could be reduced by £30 a week as part of £12bn welfare cuts
iJobs Money & Business
£40000 - £95000 per annum: Recruitment Genius: This is an exciting opportunity...
competitive: SThree: Are you passionate about sales?Do you have a keen interes...
£17000 - £30000 per annum: Recruitment Genius: This is an exciting opportunity...
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...